To retire an asset from the UniFi asset register, review the Assets procedures.
The asset register must be a complete list of all current, usable University assets. If an asset is no longer in the possession of the University, is no longer providing an economic benefit to the University, is damaged beyond repair, or was added in error, it must be removed from the asset register.
It is not possible for finance officers to dispose of an asset in UniFi. The asset disposal form (DOC, 85.5 KB) needs to be completed and sent to Assets (Corporate Finance) who will remove the asset from the asset register.
Examples of removal of assets include but are not limited to:
- asset has been added in error
- asset has been damaged beyond repair and is no longer in use
- asset has been donated to an external body
- asset has been scrapped
- asset has been sold to an external body
- asset has been stolen or knowingly lost (for example, left on a bus)
- asset has been traded in to an external body.
Contact Assets (Corporate Finance) if you have questions about retiring assets.
Added in error
Incorrect category
If an asset category was incorrectly selected when entering the line information for an order, a journal will need to be prepared by Assets (Corporate Finance) to transfer the funds between the asset account number and the correct account number.
To process the transaction, complete the asset disposal form (DOC, 85.5 KB) ensuring the appropriate account number and chartfields are entered in the 'Where Required, Transaction Chartfields' section.
Multiple items incorrectly added as one asset
If multiple items have been incorrectly added to the asset register as one asset, follow these instructions:
- Complete an asset addition form (DOC, 99.5 KB) for each item that should have been added to the register.
- Complete an asset disposal form (DOC, 85.5 KB) for the incorrectly added asset.
- Attach the asset addition forms to the asset disposal form and return them to Assets (Corporate Finance) as usual.
For future reference, this can be avoided by serialising the assets on receipt.
Single multi-part item incorrectly added as multiple assets
If a single multi-part item has been incorrectly added to the asset register as multiple assets follow these instructions:
- Complete an asset cost adjustment form (DOC, 63 KB) to consolidate the values of the multiple parts against one of the created assets.
- Complete an asset disposal form (DOC, 85.5 KB) for each of the excess parts.
- Attach the asset cost adjustment form to the asset disposal forms and return them to Assets (Corporate Finance) as usual.
For future reference, this can be avoided. If the:
- parts are all receipted together, use one tag number with a different alpha character for each part.
- parts are receipted over time, find the UniFi asset ID allocated to the first part receipted and enter that ID into the asset ID field when receipting future parts.
- asset is split-funded, use the 'Use one asset ID' button when receipting split-funded assets.
Item returned to supplier
If an item has been returned to the supplier for a refund, complete the asset disposal form (DOC, 85.5 KB) ensuring the refund chartfields are entered in the 'Where Required, Transaction Chartfields' section.
Where the credit received is less than the amount originally paid for the item, the shortfall will be journalled to general ledger account 700300 by Assets (Corporate Finance).
Damaged
In the case of an asset being damaged beyond repair where it can no longer be used, follow these instructions:
- Complete the loss report form and return it to Insurance Services.
- Complete the asset disposal form (DOC, 85.5 KB).
- Attach a copy of the loss report form to the asset disposal form and return them to Assets (Corporate Finance) as usual.
Assets disposed of as damaged will be reported in the financial statements as a loss to the University.
Donated to external body
An asset may be donated to an external party provided any costs, such as transportation, are met by the party the asset is being donated to.
Items like mobile phones or laptops should not be retained by staff members when they cease employment with the University.
While grant-funded assets cannot be donated to the chief investigator when they cease employment with the University, they can be donated to the chief investigator's new place of employment if the funding and project have been transferred along with the chief investigator.
All costs associated with donating the asset must be met by the existing grant funding, if available and permitted by the granting body, or the chief investigator's new place of employment.
Details of the donation must be provided to Assets (Corporate Finance) for quarterly review by the Chief Financial Officer.
To facilitate this process, complete the asset disposal form (DOC, 85.5 KB) ensuring information on who the asset was donated to and why the asset was donated is included in the 'Where Donated, Details of Donation' section.
Scrapped
Assets may be scrapped if they no longer provide an economic benefit to the University or are technically obsolete.
To process a retirement due to scrapping, complete the asset disposal form (DOC, 85.5 KB).
Sold to external body
When selling to an external body, you must follow these instructions:
- Complete the asset disposal form (DOC, 85.5 KB) ensuring:
- sale value is entered in the 'Disposals Proceeds' section
- revenue chartfields are entered in the 'Where Required, Transaction Chartfields' section.
- Generate an invoice within UniFi or UQ Pay and enter the asset ID in the note text field then send to the customer.
Disposal and auction of UQ Vehicles
This process is undertaken by Fleet Services.
Determining fair value
Assets (Corporate Finance) don't provide asset valuations. We can advise what the asset was purchased for, what depreciation has been charged against the asset (if any), and what the written down value of the asset is. We suggest searching for similar items for sale on eBay, Trading Post, Car Sales or via other sales forums to obtain a market value. Documentation should be kept of how the fair value was determined for GST and general audit purposes.
Commission on sale
The total proceeds received for the asset should be recorded in the appropriate sale proceed account. Any commission or disposal fees should be recorded against an appropriate expense account. Recording asset sale proceeds in the following manner will ensure that the full proceeds are accounted for as well as any related expenses:
| Cheque details | Amount | Account | Notes |
|---|---|---|---|
| Sale price - including GST | $24,800.00 | CR 155999 | This amount should be specified on the asset disposal form (DOC, 85.5 KB), either less GST ($22,545.45) or note that the amount includes GST. |
| Commission and fees - including GST | $264.00 | DR 702660 GST identifier S1 | Expense needs to be accounted for separately - not netted off against the sale proceeds. |
| Amount received | $24,536.00 | - | This is the sale price of $24,800.00 less the commission of $264.00. |
Release of assets
Once payment has been received from purchaser the asset may be released for delivery.
Deposit cash
Any proceeds received should be recorded against the operational unit's selected chartfields and the relevant account:
- Plant and equipment - 155999
- Portable and attractive item - 409590.
Generate an invoice
Refer to the Create a bill training for more information on creating invoices. There are 5 billing identifiers that can be used for the sale of an asset. One of these identifiers must be used when creating the bill:
- Asset sale - IT
- Asset sale - Other
- Asset sale - P&A
- Asset sale - MVGST
- Asset sale - MVGSTFRE.
Selecting the correct identifier and account
The correct identifier and account can be established by using the search for an asset page. Refer to the Search for asset information training for instructions on how to locate the item being sold. If the asset subtype field begins with 'P&A' the item is a portable and attractive item. If the asset subtype does not begin with 'P&A' the item is plant and equipment.
GST treatment
The tax policy determines that if an asset is being sold for 75% of its original price or less, the transaction is treated as GST free (there are exceptions for sales to staff; refer to the Assets procedures for more information).
When creating an invoice within UniFi one of these billing identifiers must be used:
- Asset sale - IT
- Asset sale - Other
- Asset sale - P&A
- Asset sale - MVGSTFRE.
Use the asset sale - MVGST billing identifier for the sale of motor vehicles and contact Finance Client Support Services or Accounts Receivable for information on adjusting the GST/VAT fields for the sale of all other assets.
If the GST has been treated incorrectly, it will need to be corrected by the Tax team in Corporate Finance.
If an asset disposal form (DOC, 79 KB) has already been submitted for the related asset, it will need to be re-submitted with a covering email stating that the proceeds have now changed. This will enable Assets (Corporate Finance) to reinstate the asset and retire it with the correct proceeds.
Stolen
In the case of an asset being stolen or knowingly lost, follow these instructions:
- Complete the loss report form and return it to Insurance Services.
- Complete the asset disposal form (DOC, 85.5 KB).
- Attach a copy of the loss report form to the asset disposal form and return them to Assets (Corporate Finance) as usual.
Assets disposed of as stolen will be reported in the financial statements as a loss to the University.
Trade-in
Read the Assets procedures for relevant policies.
Before proceeding with a trade-in, an agreement must be made with the supplier in writing that they will provide a recipient created tax invoice (RCTI). The supplier has to clearly highlight the old item and its trade-in value on the invoice as well as the full purchase price of the new item. An order should be raised for the new item and its full purchase price. Upon receipt of the reduced cost invoice Accounts Payable will apply the difference (proceeds for trade-in) to account 155999, allocating the GST as per the RCTI.
To dispose of an asset due to trade-in, complete the asset disposal form (DOC, 85.5 KB), ensuring you enter:
- trade-in value in 'Disposals Proceeds' section
- new purchase chartfields in 'Where Required, Transaction Chartfields' section
- asset ID of newly purchased asset in 'Where Trade In, New Asset ID' section.
Bulk retirements
To retire more than 10 assets:
- Use the bulk asset disposal template (XLSX, 11 KB). Instructions for completing the bulk asset disposal template are included in the bulk asset disposal cover sheet (DOC, 78.5 KB).
- Submit Excel bulk asset disposal template and PDF bulk asset disposal cover sheet to Assets (Corporate Finance).
This feature will only save time if it is filled in correctly; if there are any errors, it will be sent back for correction.
Minor equipment disposal
As there is no specific policy for the disposal of minor equipment, the Assets procedures can be used for guidance. Any proceeds received for the sale of minor equipment should be recorded against account 409595.
Use of sale proceeds
The use of proceeds from the sale of assets is only restricted if the asset is research equipment purchased from grant money. Read the Assets procedures for guidance.
Asset write-off
Assets disposed as damaged, stolen and missing will be treated as a loss to the University in the financial statements.
Where an asset with a written-down value of $10,000 or more is reported as a loss to the University in the financial statements, further authorisation is required.
In these instances additional information may be requested to assist the authorisation process.